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Question
The difference between a put and a call option is that:A. a put is an option to sell common stock at a specified price while a call is an option to buy common stock at a specified price.
B. a call is an option to sell common stock at a specified price while a put is an option to buy common stock at a specified price.
C. a call is an option to buy common stock at a specified price while a put is the option to buy preferred stock at a specified price.
D. a call is an option to sell common stock at a specified price while a put is the option to sell preferred stock at a specified price.
Answer
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Related questions
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The two types of investments that provide the highest and lowest yields in the Ibbotson study of Stocks, Bonds, Bills and Inflation are:
A.large company stocks and U.S. treasury bills.
B.large company stocks and long-term government bonds.
C.small company stocks and U.S. treasury bills.
D.small company stocks and preferred stock.
E.U.S. treasury bills and small company stocks.
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The difference between the cash market and the futures market is:
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D.that the commodities are usually less expensive in the futures market.
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A.New York Futures Exchange.
B.Chicago Board of Trade.
C.International Money Market of the CME.
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Assume you have purchased a contract for 25,000 British pounds for $35,000. Your margin requirement is $2,000. If the value of a pound increases .01, what is your percentage profit?
A.10.0%
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In order to be listed on an exchange, a firm must meet minimum standards pertaining to the following criteria:
A.the number of common shares publicly held.
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Q:
The Securities Investor Protection Corporation (SIPC) was established to:
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B.protect investors from corporate insider trading, and insure their accounts for $500,000 in case corporate fraud caused a company to go bankrupt.
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Q:
Program trading
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Q:
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A.Trading takes place by telephone or electronic network
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C.Government securities of the U.S. Treasury provide the largest dollar volume.
D.All of the above are true
Q:
An employee of an investment house who executes orders on the floor of the exchange for customers of the firm is called a:
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B.registered trader.
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Q:
From the investment banker's point of view, the major reason syndicates are formed in the distribution of large issues is for the purpose of:
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Q:
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In an efficient market environment, it is reasonable to assume that the higher the premium on a target company's stock, the less the risk of cancellation.
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Q:
You would find the payment of dividends in the statement of cash flow under:
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The value of a bond at any given time is the sum of:
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The approximate yield to maturity method tends to understate the true yield for bonds trading at a discount.
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Yield to maturity considers annual interest, difference between current price and maturity value, and years to maturity.
Q:
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Q:
What would be the current yield of a 6% coupon bond priced at $950?
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A 15-year, 7% coupon rate bond is selling for $771.82. What is the current yield of the bond?A.22.8%B.7.0%C.9.1%D.10.0%E.30.7%
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The impact of interest rate changes on bond prices can be magnified by:
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B.investing in higher-quality corporate bonds.
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The market segmentation theory focuses on:
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B.the maturity preferences of banks and those of life insurance companies.
C.phases of the business cycle.
D.All of the above
Q:
Assume a $1,000 Treasury bill is quoted to pay 10% and matures in 3 months.a) How much interest would an investor receive?b) What will be the price of the Treasury bill?c) What will be the true rate of return?